Tag Archives: news headlines

Will Apple and Amazon put aside their differences and unite in time for the launch of Apple TV?

The professional relationship between tech giants Apple and Amazon has been rocky to say the very least.

Firstly, In 2014 Amazon removed in-app payments from the iOS versions of several of its services in response to Apple demanding a 30 per cent share of the profits.

And then, in what was considered by many to be a bizarre decision, Amazon announced in October 2015 that it would no longer be selling Apple TV or Chromecast because of the direct competition between them and Amazon’s own streaming products.

At the time, the move was likened to Apple TV’s refusal to play Netflix’s streaming service because they did not want to promote a competitor, but Apple eventually gave in.

Whilst certain reports this week suggest there are changes in the waters, Amazon’s Echo Show announcement this week might be a little too close for Apple’s comfort.

Will Apple Echo Amazon’s product?

Last week, Amazon introduced the latest Alexa expansion, unveiling an Echo with a touch screen and a camera. The Echo Show features “everything you love about Alexa” with the added benefits of being able to show you things – whether it’s the weather forecast, a wikipedia page, a video, photos and more.

The device allows users to video chat with anyone who has an Echo, Echo Dot or the Alexa App, posing a big threat to Skype and Apple’s FaceTime video-calling service.

Watch Amazon’s Introducing Echo Show video below to find out more.

The device costs $229 and is expected to be a huge hit when it begins shipping in late June, quite possibly to the dismay of Apple. Indeed, the rapid speed at which Amazon has managed to expand its Echo hardware and the reasonable price points present a real threat to Apple.

As its already proven many times, Amazon is in the unique position to deny competitors access to its store. And that’s not to mention it’s currently ahead of the game and anything Apple subsequently releases is likely to come with a hefty price tag.

Time will tell what Apple has up its sleeve and whether consumers are willing to sack in their i-products for Echo.

Amazon Video for Apple TV

Various rumours have suggested this week that Amazon and Apple are headed in a much friendlier direction.

Last Thursday, Buzzfeed announced that the one major flaw of Apple TV was to be addressed: Amazon’s Prime Video service will, at last, be made available. Apple are expected to announce an Amazon Video app designed for Apple’s set-top box at the Worldwide Developers Conference (WWDC) on June 5 in San Jose.

Last year Amazon CEO, Jeff Bezos, explained that the company was waiting for “acceptable business terms” with Apple before a Prime Video app was considered. Perhaps those terms have now been agreed.

If all goes ahead, Amazon is expected to return the favour by resuming sales of Apple TV’s on its website, following a two year hiatus.

In other news this week…

Co-op releases first slavery statement under the Modern Slavery Act

Co-op has outlined how it sources, the clauses it uses in contracts and the steps it takes to audit suppliers withe regards to modern slavery. It also describes how the Co-op helps former slaves into work.

The 10-page statement outlines the Co-op’s ethical policies, its supplier approval process and how it carried out 444 audits in 2016.

The Co-op said it provided training for suppliers and it planned to develop a new procurement academy and roll out a business-wide training and awareness plan on ethical sourcing.

Cath Hill, group marketing director at CIPS, said: “The Co-op’s modern slavery statement is an excellent example of what organisations should be doing to combat this important issue. “

Australians use an estimated one billion disposable coffee cups annually, but these cups are not recyclable in most states…until now!

Melbourne-based social entrepreneur Soula Thuring has taken the direct approach, selling biodegradable coffee cups with an additional Enviro Grow kit which turns the used cup into a plant

The $2 Grow Cup of Life kit contains a soil pellet that expands with water, a seed mat and instructions for growing kale, beetroot, rocket and other healthy foods. It can be planted in the backyard or elsewhere and it breaks down in a few months

Recently the social enterprise, Streat, teamed up with Melbourne-based coffee startup Pod & Parcel to put its coffee in biodegradable coffee pods to be used in Nespresso machines

Have you ever been guilty of presenting fake news or “alternative facts” to your CFO? Integrity is a cornerstone of the procurement profession, but benefits realisation is one area where supply managers sometimes play fast and loose with the facts.

It seems everyone is talking about fake news at the moment. The term came to the fore after the U.S. election, when Hilary Clinton called out fake news as a contributing factor to the Democrats’ defeat. Since then, President Trump’s team have wholeheartedly embraced the term, regularly branding unfavourable reports as “fake news” and even describing selected media outlets (such as CNN and Buzzfeed) “fake news organisations”.

After Trump’s press secretary Sean Spicer’s first press conference contained provable falsehoods about the size of the inauguration crowd, campaign manager Kellyanne Conway came to his defence by saying that Spicer was simply presenting “alternative facts”, much to the delight of Twitter users who immediately converted the term into a hashtag.

Fake news can be dangerous – putting aside whether or not it influenced the U.S. election, the phenomenon has inflamed racial tensions, led to at least one shooting (the “Pizzagate” gunman), while more recently the two nuclear powers Israel and Pakistan exchanged tense words over a news report that proved to have no verifiable source.

The good news is that solutions are popping up all over the globe. The BBC is setting up a “fake news” team, Italy plans to establish commissions of experts to rule on the veracity of news, while Germany has threatened to fine social media platforms including Twitter and Facebook for spreading fake stories.

How does fake news apply to procurement? Let’s look at two examples – firstly, the CPO’s role as the organisation’s trusted advisor and arbiter of facts, and secondly, the risk of feeding “fake news” about cost savings upwards to the CFO.

The trusted advisor in times of crisis

When a disruptive event takes place, procurement needs to be known as the calm centre of the storm. Let’s take Brexit as an example. After the shock result in June last year, a rising sense of panic took hold of markets while business leaders worldwide were rattled. Media organisations began to speculative on the potential fallout of the Brexit vote, leading to the danger of knee-jerk reactions from CEOs and other decision-makers.

It was gratifying to see that one week later, the CEOs of the world’s two biggest professional bodies for procurement and supply management released statements that contained essentially the same message of reassurance. Importantly, both statements emphasised the procurement professional’s role as the suppressor of speculation and the guardian of facts.

ISM’s Tom Derry spoke to Procurious about his organisations’ decision to release a supplementary Report on Business revealing that the impact of Brexit on US CPOs’ buying decisions was negligible. “There has been an enormous amount of speculation about the impact of Brexit, fed by a sense of unease and uncertainty”, said Derry. “ISM was in a position to gather real data and put the information out there so businesses can make informed decisions based on facts, rather than fear, concern or emotion.”

Similarly, the late CIPS CEO David Noble urged procurement and supply professionals to “act as the suppressor of panic, not the creator”. Noble said that how supply managers behave “is fundamental to how the business manages these coming weeks and months. Supply chains can emphasise or exaggerate concern, which can then be magnified all the way down the chain.”

Benefits realisation – procurement’s very own “fake news”

While the Brexit example demonstrates how procurement can either supress or endorse speculation originating in the media, there’s one area where CPOs are guilty of generating fake news themselves – the realisation of negotiated savings and other benefits.

In a report commissioned by members of The Faculty Roundtable entitled Making it Stick, researchers found that 50% of contracted savings are not making their way to the bottom line in leading Australian organisations. Without effective contract management to realise the full value of savings and other benefits, procurement professionals risk damaging the integrity of the function. Eventually, the falsehood will catch up with them when the CFO calls them into their office and demands: “Where’s the money?”

That’s why, to avoid being a purveyor of false data, CPOs must address the fundamental shortfalls that are costing organisations hundreds of millions in unrealised savings.

Five ways to turn “fake news” into real, bankable savings

Procurement teams are adept at finding the money, but it takes a whole organisation to keep the money. Given the uncertain business climate facing organisations internationally, driving savings and other value to the bottom line is an absolute priority facing the C-level today.

Work to eliminate maverick spend and other non-compliance that undermines procurement’s gains and damages supplier relationships.

Establish crystal-clear benefits definitions, measurements and validation processes, agreed upon across the organisation.

Create a cost-conscious culture to enable CPO-level efforts to expand the value that procurement contributes.

In short, as a CPO you’ll need integrity to win the trust and respect of your team, your peers, and your suppliers. Your willingness to accept or even endorse fake news, such as panic-driven speculation or unrealised savings, will very quickly erode this respect and lose the confidence required to run an effective procurement function.

WikiLeaks has released new information on CIA programs aimed at monitoring Apple device owners. Has the CIA redirected iPhone shipments to its own facilities to infect them with spyware?

aradaphotography/Shutterstock.com

For many readers of the latest data dump from the controversial website WikiLeaks, two surprising facts stood out:

The CIA has been hacking iPhones, Macbooks and other Apple products for a decade

To install the malware, the CIA requires physical access to “factory fresh” machines. WikiLeaks suggests this is done through redirecting Apple’s supply chain through their own facilities

What has the CIA been up to?

According to the documents, CIA’s Embedded Development Branch (EDB) implants malware called NightSkies 1.2, a “beacon/loader/implant tool” that apparently allows the CIA to “gain persistence” (spy) on the device. Notably, this program has been in use since 2008. WikiLeaks also describes a project called “Sonic Screwdriver”, which allows spies to remotely hack a Mac computer from a USB accessory plugged into the machine. The release also contains details of other malware products with striking names such as “DarkSeaSkies”, “DarkMatter”, “SeaPea”, “Triton”, “Dark Mallet” and “DerStake”.

Listen to WikiLeaks’ Julian Assange’s commentary on the CIA’s malware specifically developed for Apple products:

How is the malware installed?

According to the CIA documents, NightSkies 1.2 is physically installed by a CIA operative on “factory fresh iPhones”, or handsets that users haven’t yet interacted with.

The two key words here are “physically” and “factory fresh”. The malware cannot be installed remotely, which means the CIA agent needs to get their hands on their target’s phone to install the program. This brings to mind a Hollywood-style manoeuvre where the operative would somehow pickpocket the target, install the malware with a USB, and return it to the unsuspecting iPhone owner who will never realise they’re being tracked.

However, as the iPhone needs to be “factory fresh”, WikiLeaks believes it’s possible the CIA has redirected iPhone shipments to install the tool. The organisation wrote:

“While CIA assets are sometimes used to physically infect systems in the custody of a target, it is likely that many CIA physical access attacks have infected the targeted organization’s supply chain including by interdicting mail orders and other shipments (opening, infecting, and resending) leaving the United States or otherwise”.

This raises two questions, neither of which are answered in the WikiLeaks documents:

Is the CIA infecting Apple products en-masse, or are they only intercepting, infecting and re-sending specific phones that have been ordered via mail by persons of interest?

Does the CIA visit the factory floors of Apple’s suppliers to install the malware?

Has Apple responded?

Yes. Apple has released a statement pointing out that nearly 80 per cent of the vulnerabilities exploited by the CIA have already been fixed with security patches (years ago in some cases) and added that it “will continue work to rapidly address any identified vulnerabilities.”

In its statement, Apple did not directly condemn the CIA for interfering with its products, choosing instead to distance itself from WikiLeaks:

“We have not negotiated with WikiLeaks for any information. We have given them instructions to submit any information they wish through our normal process under our standard terms. Thus far, we have not received any information from them that isn’t in the public domain. We are tireless defenders of our users’ security and privacy, but we do not condone theft or coordinate with those that threaten to harm our users.”

In other news procurement news this week…

London Mourns Victims of Westminster Attack

Thousands of Londoners gathered in central London to honour the victims of Tuesday’s terrorist attack

On the 22 March, Khalid Masood drove into pedestrians on Westminster Bridge before crashing his rented four-wheel drive into a fence outside parliament

He attacked two police officers as he tried to enter the building, fatally stabbing Keith Palmer before he was shot. Five people, including the attacker, died, and at least 50 people have been injured.

On Thursday evening, a candlelit vigil was held in Trafalgar Square. In what was a moving tribute to those affected, the Mayor of London, Sadiq Khan, addressed the crowd to much applause and a minute of silence was observed.

Tributes are pouring in from procurement professionals around the globe in response to today’s news that David Noble FCIPS, Group Chief Executive of The Chartered Institute of Purchasing & Supply (CIPS) and one of the profession’s strongest advocates, passed away late last week.

CIPS have announced that David Noble has unexpectedly passed away on Friday after a short illness.

Mr Noble’s legacy to the procurement profession includes his adroit leadership of the world’s largest procurement and supply chain professional body and his championing of the Modern Slavery Act.

Sam Walsh, former Rio Tinto CEO and CIPS president, commented that:

David will be sorely missed. He managed and grew CIPS into a truly global and financially successful organisation focused on improving and obtaining recognition for the Profession.

His initiatives such as training, licensing of Procurement Professionals, establishment of standards for anti-corruption, anti-bribery and anti-modern slavery have led to CIPS being highly regarded by Governments, Employers and Members.

CIPS loses an accomplished leader

Mr Noble took on the role of CIPS Group CEO in June 2009 after the previous CEO, Simon Sperryn, departed after only one year at the helm. Despite being parachuted into a difficult role as an “emergency appointment”, Mr Noble rapidly stabilised and increased CIPS’ finances and oversaw the steady growth of the member base to over 100,000 professionals internationally.

Prior to his captaincy of CIPS, Mr Noble was Group Supply Director at IMI plc, a FTSE 250 UK multinational company specialising in advanced engineering technology, where he was responsible for a £1billion spend. Mr Noble was also known for his pioneering of Category Management and Strategic Sourcing at Motorola in the mid-1980s. Although the majority of his career was in manufacturing, Mr Noble’s experience of the public sector, the distribution industry and large scale turnkey power station projects served him well when he engaged with the leadership of these sectors in his role as CIPS Group CEO.

Mr Noble held an honours degree and was elected a fellow of CIPS in 1994, also serving on the fellowship selection panel, the CIPS management board, the Cabinet Office Government Procurement Reform Board and the London Olympics Supplier Arbitration Board.

A global advocate for procurement

According to Keith Bird, Managing Director at The Faculty Management Consultants, Mr Noble’s global vision for CIPS means that his passing will be felt around the world. “Personally, I will remember David for his vision and tenacity. Expanding the CIPS network globally is a remarkable legacy to leave behind.”

At the time of Mr Noble’s death, CIPS has over 115,000 members across 150 countries, with offices in Africa, the Asia-Pacific, UK, North Africa and the Middle East, with partnerships in China, Poland, Romania and Sweden.

Procurious Founder Tania Seary commented that Mr Noble’s advocacy for licensing the profession will be his greatest legacy:

I last met with David at the Institute of Company Directors in Pall Mall. He was so proud of CIPS’ membership growth and its increasing levels of online engagement. CIPS, like ISM, is an important backbone to our profession – through his advocacy, David has strengthened procurement’s posture.

Similarly, Santos CPO David Henchliffe remembers Mr Noble for the work he has done moving the profession forward in one of its key areas of growth, Australia:

I worked with David as the Chair of the CIPSA Professional Advisory Group for more than 5 years. He was a tireless advocate for advancing the profession and the Institute in Australasia and will be sadly missed. I would like to extend my condolences to his family and friends.

A modern-day abolitionist

Mr Noble was a giant figure in the crusade against modern slavery, inspired by a meeting with Andrew Forrest of the Walk Free Foundation in 2012. Since then, he aligned CIPs with the cause, partnering with Walk Free to educate the organisation’s 100,000+ members through the establishment of the Ethical and Sustainable Procurement Guide.

CIPS also provided guidance to the Home Office in the creation of the 2015 Modern Slavery Act, which led to Mr Noble journeying to Vatican City in 2015 to witness the historic signing by faith leaders of a joint declaration committed to the eradication of modern slavery by 2020. He also attended a meeting at the White House to discuss how CIPS can support the G20’s Anti-Corruption Implementation Plan.

An incredibly hard act to follow

It is believed that Mr Noble’s passing will create a significant leadership gap for CIPS, as he was personally driving many of the organisation’s key initiatives. Many of the partnerships and relationships formed at the highest level were linked to Mr Noble’s personality, and the confidence and trust he inspired in others. At present there is no clear successor for CEO within the executive team. There has been some movement recently among CIPS’ leadership, with a new Chief Operating Officer joining late last year, and the Head of Finance retiring soon.

Mr Noble’s role as advocate, spokesperson and thought-leader for the profession meant he was regularly called about to comment on the biggest issues affecting the profession, from slavery, to Brexit, to finance and the manufacturing landscape.

Visna Lampasi, General Manager Group Procurement for Woolworths Limited praised Mr Noble for his pioneering spirit:

David was a driving force. He put his personal brand and energy behind licensing the profession, making the Modern Slavery Bill a reality and a creating a number of other firsts for CIPS. He was a major contributor to procurement’s development and will be sadly missed. It is a great loss, not just for the profession, but for his family and friends.

A legacy of thought-leadership

A valued contributor to the Procurious Blog, Mr Noble appeared at the Big Ideas Summit in 2015. His thought-leadership published on Procurious includes:

Flying delivery drones will soon take over the last mile of your supply chain. Have you started planning ahead for a drone-filled future?

“Alexa, re-order Doritos from Prime Air.”

Blink, and you’d miss it. Amazon purchased 10 seconds of the year’s most expensive advertising space last week to introduce the U.S. Super Bowl audience to two of its latest tech products: Amazon Echo and Amazon Prime.

Disgusted by her partner’s finger-licking, a tech-savvy woman directs her request for a second bag of Doritos to the IoT-enabled smart speaker in front of her television. The speaker (“Alexa”) in turn places an order with Amazon Prime, resulting in a delivery drone making a graceful touchdown in the yard outside.

Meanwhile in the U.K., a Youtube clip featuring former Top Gear presenter Jeremy Clarkson explains the ordering and drone delivery process in much greater detail:

Drone delivery services are swiftly approaching the commercial market, with Amazon taking a clear lead in the development race. In December, Amazon made its first successful go-round in a rural corner of England, where it has been beta-testing. While there’s still a significant weight restriction, the benefits of drone delivery are clear:

The 30-minute delivery time is an enormous improvement from the standard 24-48 hour wait customers currently experience when ordering online.

Drones can reach a height of 400 feet and fly for 24 kilometres at a stretch. They avoid traffic and potential obstacles using laser, sonar and other technology.

Environmentally, battery-operated drone delivery ticks a lot of boxes as they’ll eventually replace many fuel-burning delivery vehicles currently on the road.

Finally, the full autonomy of drone delivery will mean there’ll be very little need for human interference, leading to enormous efficiency gains for delivery companies.

After the successful beta-tests in England, drone confidence is rising in the US, although the Federal Aviation Authority (FAA) has been slow to react. A report from December 2016 claimed the FAA has yet to begin drafting rules around flying drones over populated areas.

Testing, however, is taking place, with examples including UPS making a medical supply drop to an island off the coast of Massachusetts, while Alphabet’s drone delivery initiative (Project Wing) sent a hot dinner to students at Virginia Tech. Both the U.S. Postal Service and Britain’s Royal Mail have expressed keen interest in drone delivery as the cost of traditional delivery methods continue to rise. In Europe, DHL similarly completed a round of drone testing last year.

The process of delivery drones

Using a GPS system, delivery drones can quickly generate the most efficient route and even communicate with each other. Users can use communicate with delivery drones via smart phones, selecting delivery options such as: “Bring it to Me,” “Home,” “Work,” and “My Boat.” Additionally, if the customer relocates, the drones can redirect mid-route.

While apartment buildings are still too complicated for drone routes, doorstep delivery throughout rural and suburban neighbourhoods has been mastered.

Allison Crady, Marketing Specialist at CDF Distributors, has followed the rise of drone deliveries closely. She comments that drone delivery will only be applicable to a limited number of products at first: “Giant screen TVs will still require a typical truck delivery, but drone warehouses are currently ideal for light-weight purchases such as tech gadgets or snacks. As drone weight options increase through future development, their useful applications will extend far beyond simple convenience deliveries.”

What can supply managers do to prepare?

Regulatory bodies such as the FAA move slowly to make drone deliveries a reality. Supply managers can take advantage of this delay by planning ahead for a drone-based future. This means reviewing your current delivery arrangements (in-house or outsourced) and measuring:

the number of light-weight products currently delivered by truck that could be carried by drone

the human workforce required to run a delivery fleet versus autonomous drones

your current ability to deliver to difficult/remote locations

environmental benefits of taking fuel-burning cars off the road in favour of delivery drones.

In other procurement news this week…

Huawei announces IoT Partnership with Deutsche Post DHL

Huawei and Deutsche Post DHL Group will collaborate on innovation projects to develop a range of supply chain solutions for customers using industrial-grade Internet of Things hardware and infrastructure.

The group is expected to make its IoT devices and network infrastructure accessible to DHL to assist in incorporating greater sensing and automation capabilities into warehousing, freight, and last-mile delivery services.

A spokesperson from Huawei, Yan Lida, commented, “This partnership opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously impossible ways, and defines how the Internet of Things will shape the fortunes of the logistics industry in the next few critical years of innovation.”

Floods in Western Australia closed major road transport routes for three days last week. Meanwhile, rail movement into Perth was delayed for five days.

The Newmont Mine in the Tanami desert has been closed for over a month due to the flooding. Delivery company Toll has been issued permits to use the flood-damaged roads to deliver fuel, food and emergency supplies to the community at the mine.

Parts of the Stuart Highway and Carpentaria Highway have also been closed. This is impacting on the movement of heavy trucks in the region.

HELP! 2017 is going to be an unlucky year for me – the Chinese Zodiac says I’m going to cock things up.

As a rooster, I’m in deep trouble for 2017. It’s taken me almost 36 years to grasp the fact that in popular Chinese belief your birth sign year is considered unlucky, rather than lucky. Looking back on my last two Rooster years, this makes a sad kind of sense.

If I could, I’d go back in time to visit the pubescent, socially awkward 12-year-old blundering from one disaster to another in 1993. “It’s not your fault!” I’d yell. “It’s all due to the ancient Chinese Zodiac – events are way beyond your ability to control!” I don’t even want to talk about 2005, where I was essentially the same socially-awkward child in a 24-year-old’s body. Again – not the best year for me, but now that I’m aware of it, I can happily lay the blame at the feet of long-dead Han-era astrologers.

Looking into the characteristics of Roosters, and the wider Chinese Zodiac, has been enlightening – firstly because it’s all way more complex than I thought, and secondly because I’m now aware of my own cultural ignorance in this area – but more on that later. First, let’s look at the attributes of a Rooster.

Rooster characteristics

I was hoping to find a quick list of characteristics for Roosters, but the real story is much more complicated than I assumed. It depends not only on your zodiac sign, but the element associated with your year. Here’s a handy guide from www.chinahights.com:

Type of Rooster

Year of Birth

Characteristics

Wood Rooster

1945, 2005

Energetic, overconfident, tender, and unstable

Fire Rooster

1957, 2017

Trustworthy, with a strong sense of timekeeping and responsibility at work

Earth Rooster

1909, 1969

Lovely, generous, trustworthy, and popular with their friends

Gold Rooster

1921, 1981

Determined, brave, persevering, and hardworking

Water Rooster

1933, 1993

Smart, quick-witted, tender-hearted, and compassionate

I was born in ’81, which means I’m a Gold Rooster – determined (kind-of), brave (sometimes), persevering (I’m finishing this article, aren’t I?), hardworking (yes boss), and good-looking (I may have slipped that one in). Interestingly, only Wood Roosters have the characteristic I’d most associate with actual roosters, which is (pardon the pun) “cockiness”.

To complicate things further, there are also animal signs assigned by month (called inner animals), by day (called true animals) and hours (called secret animals). Which means that as well as being a Gold Rooster, I’m also a Rat internally, a Goat truly, and a Tiger secretly. Confused? Blame the astrologers.

Should Roosters ask for a promotion in 2017?

Well, at a macro level, it’s an unlucky year for you overall, but perhaps if you get the details right using the list below, you’ll be fine. In short, when you meet your boss to have that all-important career discussion, make sure you pick the month and day carefully with reference to the Chinese lunar calendar. Ensure you’re wearing gold, brown or yellow (NOT red!), pin a gladiola to your top before the meeting, and try to manoeuvre yourself so you face south or southeast during the conversation.

Lucky stuff for Roosters

Lucky numbers: 5, 7, and 8

Lucky days: the 4th and 26th of any Chinese lunar month

Lucky colours: gold, brown, and yellow

Lucky flowers: gladiola, cockscomb

Lucky directions: south, southeast

Lucky months: the 2nd, 5th, and 11th Chinese lunar months.

Stuff Roosters should avoid

Unlucky colour: red

Unlucky numbers: 1, 3, and 9

Unlucky direction: east

Unlucky months: the 3rd, 9th, and 12th Chinese lunar months

On a serious note – I’m culturally ignorant

How did it take me this long to find out that Chinese birth-sign years are unlucky rather than lucky? I’m ashamed to admit it, but what I’ve displayed is a lack of cultural curiosity. According to Cultural Synergist Dr Tom Verghese, curiosity is one of the attributes that makes for a culturally intelligent leader. Leaders without this attribute lack the motivation to find out more about the cultures they’re working with by asking lots of questions to develop their CQ, or cultural intelligence.

Dr Tom writes, “I believe curiosity should drive each of us in our own inter-cultural explorations. Understanding the values of other cultures and what their celebrations represent is certainly an important step we can all take towards representing and appreciating diversity and inclusion in our communities.”

Lesson learned. This year I’m going to do two things:

Make an effort to display more curiosity as I seek to improve my cultural intelligence, and

Chinese President Xi Jinping claims world leadership for globalisation while the U.S. moves towards protectionism.

AFP PHOTO / POOL / Billy H.C. KWOK

Chinese President Xi Jinping used his address at the World Economic Forum in Switzerland last week to defend globalisation and criticise the rise of protectionism in Western economies.

The speech is the latest in a series of appearances on the world stage where Xi has sought to support the existing economic order that has fuelled decades of unprecedented growth in China. Similar appearances include Xi’s address to the United Nations in 2015, hosting the G20 Summit in 2016 and his speech at the Asia-Pacific Economic Cooperation Summit in Peru in November last year.

De facto Chinese leadership?

With the Trans-Pacific Partnership scheduled for the chopping block when President Obama steps down, Xi now has the opportunity to shape global economic systems to China’s benefit and step into an apparent vacuum for worldwide economic leadership, particularly where free trade and globalisation are concerned. In many ways, the world is now witnessing the situation Obama sought to avoid with his “Pivot to Asia”, designed to maintain American influence in the East.

In a commentary following Xi’s speech, the China Daily referred to the country as now being “the one major power with a global outlook”. “Ready or not, China has become the de facto world leader seeking to maintain an open global economy and battle climate change. In effect, President Xi has become the general secretary of globalisation.”

Xi’s Defence of Globalisation

“There is no point in blaming economic globalisation for the world’s problems because that is simply not the case,” Xi said. “And that will not help to solve the problems.” The problems Xi is referring to are those often referenced by Western populists across the U.S. and Europe, including growing wealth gaps and domestic unemployment related to offshoring. Xi’s speech touched on some of the deeper causes of sluggish world growth, looking to reinforce confidence in global development.

“Protectionism is like locking yourself in a dark room, which would seem to escape wind and rain, but also block out the sunshine,” Xi told the Forum. “No one is a winner in a trade war.” Xi announced that China has no intention to devalue its currency to boost competitiveness, despite ongoing criticism on this point from the new U.S. President.

Can globalisation function without the U.S.?

Despite the nation’s ongoing economic slowdown, the World Economic Forum estimates that China accounted for almost 39% of global growth last year. President Trump’s protectionist tariffs, along with his retreat from trade deals and climate pacts are likely to slow growth further. A similar level of concern is building in India, where the $150 billion outsourcing industry is under threat.

As WorldPost Editor-in-chief Nathan Gardel writes, “The optimal arrangement for making globalisation work is for the U.S. and China to join together as “indispensable partners” based on a convergence of interests to create a world order that works for all. If the world’s two largest economies, though from distinct civilizational spheres, don’t buy in, it won’t work for anyone.”

Procurement of a fleet of up to 60 High Speed 2 (HS2) trains was officially launched on Friday by Britain’s state secretary for transport.

HS2 is a planned high-speed railway in the United Kingdom linking London, Birmingham, the East Midlands, Leeds, Sheffield and Manchester. It would be the second high-speed rail line in Britain, after HS1 which connects London to the Channel Tunnel.

The contract has an estimated value of £2.75bn and is due to be awarded by the end of 2019. The overall projected project cost of HS2 is £56bn.

The announcement comes after President Trump criticised GM and other automakers for building vehicles in Mexico and shipping them to the U.S., including a Tweet threatening to tax GM for importing the Chevrolet Cruze.

While maybe not at the same level, the same could be said for the organisational supply chain. It exists in the background. If it works seamlessly, then people don’t really take any notice of it. But, without it, organisations would grind to a halt. It really is the unsung hero of an organisation (as are all the people working in it!).

This week, supply chains have been in the news for the right reasons. The US Aerospace and Defence Industry and Domino’s Pizza were just a couple of organisations to highlight the good work their supply chains were doing.

However, it wasn’t all good news, as supply chains came under fire again for not doing enough to combat modern slavery.

SMEs the Unsung Hero for A&D

The Farnborough International Airshow, held in the past week, presents a fantastic opportunity of organisations further down the supply chain to present their new technologies and ideas. This year it also allowed the US A&D Industry the chance to celebrate its SMEs.

According to data from the Aerospace Industries Association (AIA), the US A&D Industry has exports totalling $142 billion last year. Of that, the supply chain generated 58 per cent of the exports, a whopping $78 billion.

The numbers go to show the strength of the supply chain companies, as well as the global partnerships they have built across the world. The importance of the supply chain SMEs is clear to the US A&D industry too. They have led the way in building a solid reputation of US technology and innovation across tens of thousands of projects worldwide.

AIA CEO David Melcher also sees a bright future of the SMEs. With trade agreements in place, Melcher argued that “small- and medium-sized companies can generate exports for decades more to keep this equipment operating effectively and efficiently.”

Supply Chain Success

Another unsung hero, at least until this week, was the supply chain for Domino’s pizza. The fast-food giant announced a 12 per cent increase in sales in the second quarter of 2016, beating profit and revenue forecasts.

The company attributed increased supply chain sales, including increased volumes and store growth, as a key reason for this. The supply chain sales themselves also saw a 12 per cent increase in the quarter.

Heroes Required

However, the week wouldn’t be complete without stories of what organisations need to do to combat slavery in their supply chains. A report released this week showed that the ICT industry has plenty to do in this area.

KnowTheChain compared 20 ICT companies, including Apple, HP and Samsung, on their supply chain practices. The results were not pretty, with the majority of the organisations scoring under 50 (out of 100) for efforts to eradicate forced labour, and how transparent their efforts were in doing this.

However, according to a business leader in the cosmetics industry, eradicating forced labour and slavery completely is an on-going battle. Simon Constantine, of British retailer Lush, stated that even though Lush is willing to pay more for ethically sourced goods, the company has still struggled to keep up.

Constantine said, “With the amount of work you need to do to stay on top of things, and everything changing so rapidly…I would never be comfortable saying our supply chain is 100 per cent clean.”

But with new regulations increasingly putting the onus on companies to ensure their supply chains are clean, it’s a battle that is set to be fought just as hard as ever.

Is your supply chain an unsung hero? Why not let us know and we can help you tell your story?

We’ve been pouring over the news and digital media to make sure you don’t miss the key headlines this week…

Brexit Causes “Dramatic Deterioration” in UK Economy

The decision by UK voters to leave the EU has led to a “dramatic deterioration” in economic activity in Britain.

Markit’s Purchasing Managers Index shows a fall in economic output to 47.7 in July, the lowest since the end of the Global Financial Crisis.

Both manufacturing and service sectors saw a decline, though exports were up due to the weakening pound.

Chris Williamson, Chief Economist at IHS Markit, said the downturn has been “most commonly attributed in one way or another to ‘Brexit’.”